How the public service pensions remedy affects your pension
If you’re a member of a public service pensions scheme, find out how the pension remedy (also known as McCloud) could have affected you.
This collection brings together all of the relevant guides for pension scheme members who were impacted by the public service pensions remedy.
The public service pensions remedy is a solution to address the discrimination that occurred in the public service pensions reforms from 2014. It involved making changes to the pensionable service of public service pension members over the ‘remedy period’. The purpose of the remedy is to make sure that members are in the same tax position they would have been in if the discrimination had not happened.
You may be affected by the remedy if you were a member of a public service pension scheme before 1 April 2012 and continued to be in service after the start of the remedy period for your scheme.
How you may be impacted and the action you may need to take is different depending on the type of pension scheme you are a member of:
- Chapter 1 schemes — these are any public service pension schemes other than schemes for judges or local government employees
- Chapter 2 schemes — these are judicial pension schemes
- Chapter 3 schemes — these are local government pension schemes
When the remedy period is
For most schemes, the remedy period is 1 April 2015 to 31 March 2022.
The remedy period is split into 2 separate periods known as the:
- compensation period, which covers the tax years 2015 to 2016 up to and including the tax year 2018 to 2019
- public service pensions remedy tax administration framework period, which covers the tax years 2019 to 2020 up to and including the tax year 2022 to 2023
Local government schemes in England and Wales
For local government schemes in England and Wales, the remedy period is 1 April 2014 to 31 March 2022.
The remedy period is split into 2 separate periods known as the:
- compensation period, which covers the tax years 2014 to 2015 up to and including the tax year 2018 to 2019
- public service pensions remedy tax administration framework period, which covers the tax years 2019 to 2020 up to and including the tax year 2022 to 2023
Agency schemes
For agency schemes, the remedy period is 1 April 2016 to 31 March 2022. The remedy period is split into 2 separate periods known as the:
- compensation period, which covers the tax years 2016 to 2017 up to and including the tax year 2018 to 2019
- public service pensions remedy tax administration framework period, which covers the tax years 2019 to 2020 up to and including the tax year 2022 to 2023
Chapter 1 guidance — pension members who are not judicial or local government members
Chapter 2 guidance — judicial scheme members
Chapter 3 guidance — local government scheme members
Changes in your annual allowance
Changes to your benefits as a result of the remedy may mean your annual allowance tax position has changed. Check if a previous annual allowance charge can be reduced, or if a new or increased charge may be due.
Changes in your pension lifetime allowance
If you have had a benefit crystallisation event during the remedy period, your lifetime allowance tax position may have changed. Check if a previous lifetime allowance charge can be reduced, or if a new or increased charge may be due.
How unauthorised payments are affected
If you paid an unauthorised payment charge or an unauthorised payment surcharge during the remedy period, your change in benefits may affect this.
Tax agents guidance
If you are a tax agent, find out how to check your client’s tax position if they’ve been affected by the remedy.